GUEST OPINION: Holly School District Millage renewal not an increase in taxes

By Kent Barnes

Wednesday, October 3, 2012

On Tuesday, Nov. 6, the Holly Area School District will ask our district residents to approve the renewal of our non-homestead millage proposal. Since the ballots are so crowded with many individuals running for office, coupled with several constitutional proposals, I can understand how our 18 mill non-homestead millage renewal might get lost. I want to share the importance of this renewal millage to our school district and its stakeholders. With our millage proposal being at the end of the townships' ballots, I encourage our stakeholders to review the entire ballot before casting their vote.

If approved, Holly Area School District residents will not see an increase in their primary residence's taxes. If this renewal fails, no decrease in homeowners' taxes for their primary residence will occur. Simply stated, this renewal proposal will not affect the taxes on the primary residence in which you live.

This millage proposal is not a new tax. Rather, the proposal is a renewal to continue the current 18 mill assessment on non-homestead properties. What are non-homestead properties? Non-homestead properties include industrial and commercial properties, second homes, and some agricultural property. Non-homestead properties do not include a family's primary residence.

This proposal is not a new tax or a sinking fund. The proposal is a continuation of the existing 18 mill assessment on non-homestead properties. Failure to renew this non-homestead millage would result in our school district's foundation allowance being reduced by $972 per student. This 18 mill non-homestead millage provides approximately $3.3 million a year for general operating expenses.

The Holly Area School District must levy 18 mills on non-homestead properties to receive our full state funding of $6,966 per student. Since 1994, our school district voters have twice approved this millage, most recently in June 2004. If this proposal fails, the state does not replace the $3.3 million dollar loss of revenue.

No hidden agenda exists in this renewal. No "smoke and mirrors" exist with this renewal. This millage renewal is very straightforward. This renewal is simply one of the ways our school district is funded. In the early 1990s, Proposal A changed school funding and the manner in which property taxes were assessed. The state assumes that our school district will receive these 18 mills.

One stakeholder asked, "Then what is the bottom line?" Without a renewal, the Holly Area School District will lose $3.3 million dollars for the 2014-2015 school year. Without a renewal, the state would pay our district the foundation allowance minus the 18 mill levy on non-homestead property. A renewal will ensure full school funding without increasing homeowner taxes.

This renewal is needed. The $3.3 million dollars is approximately 10 percent of our budget. Without this renewal, the district would be forced to reduce programs to offset this revenue reduction. If you have additional questions regarding the Holly Area School District 18 mill non-homestead millage proposal, please contact me at kent.barnes@has-k12.org or phone 248-328-3141.

Kent R. Barnes is the superintendent for the Holly Area School District.